Invested in HSBC shares 5 years ago is now worth...

HSBC (LSE: HSBA) has been among the strongest performers on the FTSE 100 over the past five years, with the article highlighting that only three other index members have outpaced it: Rolls-Royce (+1,233%), Lion Finance (+797%) and Standard Chartered (+429%). Excluding dividends, the HSBC share price is up 309% since mid-September 2021, turning a £10,000 stake into almost £41,000. Including dividends, the value exceeds £50,000. The gains are linked to higher interest rates, which lifted lenders’ profitability, and the BoE held its rate at 3.75% this week. Still, the stock is no longer “cheap”: the price-to-book ratio is 1.8 and the dividend yield is 3.6%, below earlier levels. HSBC said wealth fee and other income grew 21% in the second quarter, with pre-tax profit excluding notable items up 13% to $10.3bn. It also resumed buybacks with a $1bn program after resuming activity post Hang Seng Bank acquisition. Key risks cited include China and Hong Kong regulatory, geopolitical, and financial uncertainties.